Labour Politicians Received Nearly £300,000 in Freebies from UAE and Manchester City

Labour politicians have received nearly £300,000 in freebies, including VIP tickets, hospitality, and foreign trips, from Manchester City and the United Arab Emirates. These disclosures coincide with scrutiny over a £55 million taxpayer loan overseen by Andy Burnham, then Mayor of Manchester, to an entity linked to the Arab state.

According to the MPs' Register of Interests, thousands of pounds worth of benefits were provided to Labour MPs. Among the recipients were VIP seats for Labour's deputy leader, Lucy Powell. The total value of these handouts from the UAE and Manchester City to Labour MPs amounted to £273,396, a sum greater than that received by all other political parties combined.

Loan to UAE-Linked Entities

The £55 million loan, intended to finance property projects, has drawn attention to Andy Burnham's direct involvement. The funds were channeled to three Jersey-based property companies ultimately controlled by Sheikh Mansour's investment vehicle, Abu Dhabi United Group (ADUG). Sheikh Mansour is also a member of the Abu Dhabi royal family, serving as the UAE's vice president and deputy prime minister.

Burnham chaired two crucial meetings in 2017 where the funding was approved from the Greater Manchester Housing Investment Loan Fund (GMHILF). This fund, a £300 million pot of taxpayer money lent to the region by central government, was intended to support housing projects that would otherwise face funding difficulties.

All three loans were directed to companies ultimately owned by ADUG. Two loans, totaling over £30 million, went to New Little Mill Developments Ltd and Vesta Street Developments Ltd. Subsequent filings indicated that Sheikh Mansour was the ultimate beneficiary of these Jersey-based companies. Research on Manchester City Council's joint venture with ADUG suggests ADUG was also the ultimate beneficiary of the third company, Lampwick Developments Ltd, when the Greater Manchester Combined Authority (GMCA) approved a £24.5 million loan to it.

Scrutiny and Reactions

Commentators are questioning why a substantial portion of the fund was lent to Sheikh Mansour, given his considerable wealth, and why this occurred under Burnham's leadership as mayor. Questions have been raised about whether these projects, which included apartment construction, could have secured financing from the private market on competitive terms.

Louie French, the shadow sports minister, stated that an inquiry is needed to understand why these firms received loans from a fund intended for housing projects that would not otherwise be viable. He suggested that these companies could have obtained loans from the private market and questioned why taxpayer money was used instead, with approval from meetings chaired by Burnham.

John Leech, the Liberal Democrat chairman of the GMCA overview and scrutiny committee, indicated that the committee would investigate the public loans for housing schemes, suggesting they appeared misaligned with the fund's stated objectives.

Freebies and Political Connections

Among the political figures receiving freebies, Lucy Powell, MP for Manchester Central, received free tickets to five matches worth £2,360, including a VIP ticket costing £849 for a match between Manchester City and Newcastle in March 2024. Andrew Western, Labour MP for Stretford and Urmston, accepted hospitality for four matches, including two VIP tickets for the Community Shield worth £880. Jeff Smith, MP for Manchester Withington, also received VIP tickets to Manchester City matches, including a ticket for the FA Cup final against Manchester United valued at £1,798.

Former Prime Minister Sir Keir Starmer also accepted a ticket to watch Arsenal play Manchester City in March 2024, valued at £900.

An investigation into the MPs' Register of Interests found that UAE government ministries, royal offices, and state-funded bodies have spent over £467,000 supporting UK politicians since 2012. Labour MPs had 28 entries for 25 MPs, while Conservative MPs had 43 entries for 38 MPs, valued at £174,133. The SNP, Liberal Democrats, and Reform parties also received funding totaling £15,000, £3,500, and £1,000 respectively.

Donors included the UAE's Ministry of Foreign Affairs, the Government of the UAE, the Abu Dhabi Education Council, and the Crown Prince of Abu Dhabi. Between October 2014 and May 2025, Manchester City provided handouts valued at over £25,000 to politicians from various parties.

Manchester City denies any wrongdoing and is appealing its financial fraud verdict. The UAE has reportedly threatened to withdraw from major UK investment projects in retaliation for the verdict.